22
Architecture Industry 91,000 registered architects in U.S. $400B in construction contract value 66% new construction,34% renovation 190,000 employed in U.S. 2% of total billings are sole proprietorships

33
Financial Overview Confidential Complete set of financials provided to team by RNL Since 2000 RNL has followed industry trends Reduced billings and reduced headcount Change orders hard to get approved Pipeline of future projects weak

36
Annual Report Quote “ Early in the second quarter (2001), it became obvious that a slowdown was beginning to occur, as projects were being delayed, or were slow to start. Extra services orders were becoming harder to negotiate, and many projects were put on hold, with little advance notice…”

37
Annual Report Quote “…as a result adjustments in staffing had a lag time, which resulted in higher indirect time and lower profitability than was planned. Adjustments in staffing and staff requirements continue to be a challenge”

41
U.S. vs. European Firms U.S. Develop schematics Write specifications Describe building process Movement to mixed use “Big Boxes” Build to invest European Develop schematics Don’t write specs Architect also the builder Compact city designs Mixed use cities Firm size comparable to U.S. Build to suit

45
European architecture ranges from very old to very new Brunelleschi’s St. Maria del Fiore in Florence, built 1418-1434. First freestanding copula. Filippo Brunelleschi (Italian) 1377-1446 Roman and Renaissance style Art-Nouveau to Modern to Deconstructivism Frank Gehry’s Guggenheim Museum in Bilbao, Spain. Built 1993-1997. Frank Gehry (American)

53
Coop HimmelB(L)au Founded in 1968 in Vienna, Austria, by Wolf D. Prix and Helmut Swiczinsky Focus within the fields of Urbanism, Architecture, Design and Art. In 1988 and 2000 second offices were opened in Los Angeles, California and Guadalajara, Mexico, respectively.

57
Moser Architekten Large full service firm Project Development Project Management Architecture Additional Services Founded in 2000

58
“Architecture is art. architecture is sustainable, appropriate and physical. its beauty comes from the inside. the content shapes the building.”

59
querkraft Small full service firm Market segments Commercial business Shops and restaurants Residential single family housing Multi family housing / apartment complexes Public construction Urban development

62
Laszlo Rajk – Köztigon Architect’s Studio “Architecture is parasitic - it settles on already existing formations. The Via Appia still functions as a road, old town structures remain unchanged - indeed, the new towns are the continuations of the old. Tiny hovels were built into the mega-structure of the Marcus Aurelius Theatre, luxury penthouses or attics sit astride scruffy old buildings, and utopianists still dream of family homes built into the structural skeletons of skyscrapers.” Professional Experience 1992- Hungarian Film Academy, Budapest - professor of film architecture 1990- Köztigon Architects' Studio - principal, chief architect 1990-96 Member of Parliament Member, Committee on Culture Member, Committee on Foreign Affairs 1986-1990 MAFILM, Budapest - production designer before 1986 worked as an architect at several companiesHungarian Film Academy

63
Graphisoft Headquartered in Budapest A leading provider of design and building information management solutions. Graphisoft employs more than over 300 people worldwide. ArchiCAD – competes with AutoCAD by Autodesk Used by more than 100,000 architects, civil engineers, facility managers and building professionals. In July 1998, the Company established Graphisoft Park, a high-tech office park on the banks of the Danube.

64
Our Research Hypotheses European architects design for greater permanence of use Outsourcing is changing the nature of the business E-mail and the internet improve design process Terrorism threats are influencing building design